Replies to post #4241 on Value Microcaps Motherboard

[lentinman]

Death: KKD:

I don't understand what is going on with this stock. All day Friday on CNBC they talked about KKD and bankruptcy. I don't understand why. A cursory look at the numbers don't indicate it to me, but obviously, it is a serious possibility. I just haven't researched it. You don't drop 88% from your high with a 48% short ratio for nothing!

I was in Wal-Mart about 2 hours ago and I'm walking by some Krispy Kreme donuts. I'm thinking that 1) I love them. 2) I want me some KKD's now. 3) I didn't give them up for Lent. But, then I look at the price and think to myself that if the price was just 88% lower, I would consider it.

I think KKD is getting caught up in the same deal as International Bakery (from Kansas City) which declared BK a year or so ago due to the anti bread diet fads. I wouldn't touch anything that was flirting with BK. It may be down 88% from the high, but if you buy right now, it can still go down 100% - and then it wouldn't have mattered whether you lost 100% of $50 or 100% of $6 - assuming you invest the same amount of money. Too risky and unknown for me.

I'll tell you what though. This post has got me rethinking that Wal-Mart decision.

Len

[rrat02]

KKD is not a buy at any price. They have a number of underperforming franchises which at some point is going to result in huge losses/write-offs. Previous management, to put it mildly, was shady. Headed for BK. IMHO.

P.S. Have never owned the stock.